FridayOL

Fuel Price Hike Alert: July's Petrol and Diesel Costs Will Sting

South African motorists, prepare for a jolt at the pumps! After a welcome respite of four months with decreasing fuel prices, July is bringing a sharp reversal. International oil price surges are the primary culprit, and the Central Energy Fund (CEF)'s month-end data paints a concerning picture. Let’s break down exactly how much more you can expect to pay for petrol and diesel.

Why Are Fuel Prices Going Up Again?

The global oil market is notoriously volatile, and recent events have significantly impacted prices. Several factors are contributing to this rise:

• Geopolitical Tensions: Ongoing instability in key oil-producing regions continues to create uncertainty and push prices upward.
• Increased Demand: As economies around the world recover from the pandemic, demand for oil is rising, outstripping supply in some cases.
• Refinery Issues: Unexpected shutdowns and maintenance at refineries have also constricted supply, further contributing to price increases.
• Rand/Dollar Exchange Rate: The weakening of the South African Rand against the US Dollar makes imported fuel more expensive. A significant portion of South Africa’s fuel is imported.

How Much Will Petrol and Diesel Cost in July?

According to CEF data, here's a preliminary estimate of the price changes we can expect:

• Petrol (93 Octane): An increase of approximately R1.50 to R1.70 per litre is anticipated.
• Petrol (95 Octane): Expect a rise of roughly R1.60 to R1.80 per litre.
• Diesel (0.05% Sulphur): Diesel prices are projected to increase by around R2.10 to R2.30 per litre.
• Diesel (0.005% Sulphur): The increase for this grade of diesel is estimated at R2.30 to R2.50 per litre.

Please note: These are estimates and are subject to change before the official announcement by the Department of Mineral Resources and Energy (DMRE).

What Does This Mean for South African Consumers?

These price hikes will undoubtedly put a strain on household budgets, especially for those who rely heavily on their vehicles for commuting and work. The increased cost of transportation will also likely impact the prices of goods and services across the board, contributing to inflationary pressures.

Tips for Saving on Fuel

While we can't control global oil prices, there are steps you can take to mitigate the impact:

• Drive Efficiently: Avoid aggressive acceleration and braking. Maintain a steady speed.
• Keep Your Tyres Properly Inflated: Underinflated tyres increase rolling resistance and fuel consumption.
• Reduce Unnecessary Weight: Remove any unnecessary items from your vehicle.
• Plan Your Trips: Combine errands to minimize driving distance.
• Consider Carpooling: Sharing rides can significantly reduce fuel costs.
• Shop Around for Fuel: Use fuel price comparison apps to find the cheapest petrol stations in your area.

Looking Ahead

The volatility in the oil market is expected to continue in the near term. South African consumers should brace themselves for potential further fluctuations in fuel prices. Staying informed and adopting fuel-efficient driving habits are key to managing these costs.